S&P amends Rabobank rating to A+
S&P has downgraded Rabobank to A+ from AA-. This adjustment is the result of the annual evaluation by S&P which took place in October. The outlook was already negative.
The decision to amend the rating is primarily driven by S&P’s expectation that impairments on Rabobank’s CRE and SME loan portfolios during the years 2015 and 2016 will remain at an elevated level (i.e. comparable to 2014). Rabobank is more optimistic than S&P. The CRE market seems to have reached its trough and SME impairments are likely to decline in 2015 already, considering the current recovery of the Dutch economy.
Rabobank feels that it’s a pity that we have lost the AA- rating from S&P. As an A+ rated bank, Rabobank will remain in the league of commercial banks with a high rating. In Europe, only two commercial banks have a higher rating from S&P, globally nine. In the Netherlands, Rabobank will keep the highest rating. For that matter, Moody’s, Fitch and DBRS have allocated Rabobank the following ratings: Aa2, AA- and AA (high) respectively.
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